Phoenix Mills to buy back four malls for Rs 1,350 cr, regain sole ownership of assets

Phoenix Mills Ltd, a major retail developer, is buying stakes back from various investors who had funded four of its shopping mall projects and it's going to cost around Rs 1,350 crore.

Moneycontrol News

Phoenix Mills, a major retail developer, is buying back stakes, from other investors who had funded four of its shopping mall projects, for Rs 1,350 crore.

The only pending payment now is of Rs 34 crore for 6 percent stake held by IL&FS Investment Managers in one of assets in Kurla. Once the payment is done, Phoenix will become the singular owner of the properties.

Pheonix Mills was left with 24-70 percent ownership in the assets after it raised capital from these investors between 2006 and 2007. The company has since been buying back stakes in the special purpose vehicles (SPVs) holding these assets, the Mintreported.

However, post-buyouts, the developer will still have partnerships with some investors in its malls located in Chennai and Bengaluru.

One of Phoenix’s investors—Canada Pension Plan Investment Board (CPPIB)—will invest a total of USD 250 million in several tranches to ultimately have up to 49 percent stake in Island Star Mall Developers, a Phoenix subsidiary.

Island Star Mall Developers owns the Phoenix MarketCity in Bengaluru.

Phoenix already owns huge shopping malls in Mumbai, Pune, Bengaluru, Lucknow and Bareilly, with as much as total 6 million sq ft area. The developer wants to double this in next 5-6 years in partnership with CPPIB.

The firms’ growth plan includes buy-back strategies to gain full ownership, expansion design for existing malls, and new projects with CPPIB, Srivastava told the newspaper.